The drill bit is essential to junior mining companies. Only through active exploration can investors separate the companies with potential from those without. Mick Carew of Haywood Securities discusses five companies on track to create value through the drill bit.
High-Grade Gold Camps in Canada
The Gold Report: You follow a large number of junior mining companies. Would you tell us about a few that you expect to create value through the drill bit?
Mick Carew: I’ll start with TerraX Minerals Inc. (TXR:TSX.V; Not Rated), which has the Yellowknife City Gold Project (YCGP) in the Northwest Territories. YCGP is located in one of the six major high-grade gold camps in Canada, the Yellowknife greenstone belt, which hosts the past-producing Con and Giant gold mines. Both deposits are situated along several shear zones, with numerous historical gold showings and high-grade drill results that have been the focus of TerraX’s exploration program to date. YCGP exhibits a number of similarities to the Timmins gold camp, including timing of gold mineralization and the deposition of temporally associated sedimentary host rocks.
Owing to its proximity to Yellowknife, the project is readily accessible via an all-season road and is close to infrastructure, including hydroelectric power, and a skilled workforce. Osisko Gold Royalties Ltd. (OR:TSX; Buy; $19/share Target Price) is a 16% shareholder, after investing in the company in June 2015.
TGR: TerraX recently released drill results. What do you make of them?
MC: TerraX released assay results from six drill holes at its Homer Lake target within YCGP. The intersection of gold mineralization along the north-south-trending structure at Homer Lake confirms earlier rock-chip and trench sampling results collected in 2014 and 2015. Additional intersections of lower grade and/or narrower intersections of gold and silver mineralization indicate that multiple subparallel structures could be present.
“TerraX Minerals Inc.